Clarification of liability provisions for consolidated groups

On 14 December 2013, the Assistant Treasurer announced that the consolidation calculation and collection of income tax liabilities amendments will not proceed.

In the 2010–11 Budget, the former government announced new measures that would improve how we calculate and collect income tax from consolidated groups and multiple entry consolidated groups (MEC groups) by:

  • clarifying that, from 11 May 2010, we could recover unpaid pay as you go (PAYG) liabilities under the 'liability for payment of tax' rules
  • clarifying that, from 11 May 2010, the 'liability for payment of tax' rules would apply to MEC groups
  • clarifying that from the 2004–05 income year, a contributing member of a tax sharing agreement that paid its contribution amount under the agreement could leave a consolidated group or MEC group clear from any further liability (where requirements were met)
  • ensuring that, from 1 July 2002, where there was a change in the provisional head company of a MEC group during an income year any PAYG instalments paid by the former provisional head company on behalf of the group were attributed to the group.

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    Last modified: 07 Dec 2011QC 25185